Pete’s Source Stimulus – Remastered
Source 1 – IBISWORLD
Introduction:
IKEA Pty Limited is a foreign-owned, private company that derives its revenue from retailing
and distributing furniture and furnishing accessories. The company employs approximately
3,700 staff across its operations in Australia and is administered by its head office in Tempe,
New South Wales.
IKEA Pty Limited is a wholly owned subsidiary of Netherlands-based furnishings
manufacturer, INGKA Holdings BV.
Brands / Businesses / Products
IKEA Pty Limited retails and distributes furniture and furnishing accessories in Australia. The
company provides the following range of products:
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Bathroom - Washstands, bathroom storage, bathroom accessories, wash-basins,
taps, mirrors, bathroom textiles, and lightning.
Bedroom - Bed frames, mattresses, bedroom textiles, bedroom storage, and lighting.
Children’s IKEA - Mattresses, storage furniture, accessories and related items for
babies and children.
Cookware - Pots & pans, food storage & organizing, bakeware, kitchen utensils,
knives & chopping boards, ovenware, mixing & measuring tools, dish-washing
accessories, and kitchen textiles.
Decorations - Frames & pictures, candle holders & candles, mirrors, plants, plant
pots & stands, vases & bowls, clocks, paper shop, and decorative accessories.
Dining - Tables, chairs, dining sets, storage, bars tables & chairs, stools & benches,
cafe furniture, highchairs, and junior chairs.
Food - Meat, fish & seafood, vegetables & side dishes, bread & dairy, beverages,
sauces, jam & condiments, pastries, desserts & cookies, sweets, chocolates & snacks,
and cool bags & cookbooks.
Hallway - Clothes & shoe storage, wall shelves, storage boxes & baskets, hallway
lighting, mirrors, and stools & benches.
Laundry - Open clothes & shoe storage system, laundry & cleaning, clothes
organisers, and hooks & hangers.
Lighting - Ceiling lights, table lamps, floor lamps, work lamps, shades, bases & cords,
integrated lighting, spotlights, wall lamps, children’s lighting, light bulbs &
accessories, batteries & chargers, LED lights, decorative and bathroom lighting.
Living Room - Sofas & armchairs, TV & media furniture, BESTA system, living room
storage, coffee & side tables, lighting, and textiles.
Kitchens - Kitchen cabinets & fronts, interior fittings, appliances, modular kitchens,
kitchen benchtops, kitchen taps & sinks, wall storage, wall panels, kitchen islands &
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trolleys, step stools & step ladders, kitchen integrated lighting, pantry, and knob &
handles.
Outdoor - Dining furniture, lounging & relaxing furniture, parasols & gazebos,
outdoor cushions, decorative lighting, outdoor organising, barbeques, and flooring.
Secondary Storage - Storage systems & units, open clothes & shoe storage system,
pantry, wall shelves, rack & stands, small storage, and tools & fittings.
Small Storage - Storage boxes & baskets, paper & media organisers, hooks &
hangers, bins & bags, waste sorting, clothes organisers, bathroom accessories, and
food & storage organising.
Tableware - Dinnerware, glassware & jugs, table linen, napkins & napkin holders,
cutlery, serve ware, coffee & tea, and children’s tableware.
Textiles & Rugs - Bedroom, rugs, curtains & blinds, curtain rods & rails, fabrics &
sewing, cushions & cushions covers, blankets & throws, kitchen, table linen,
bathroom, children’s and baby, mattress & pillow protectors.
Home Electronics - Cables & chargers and mobile and tablet accessories.
Office Furniture - Desks & tables, desk chairs, office storage, bins & bags, paper &
media organisers, office lighting, cable management, and office series.
Company Snapshot:
IKEA is a Proprietary Company that is ranked number 358 out of the top 2000 companies in
Australia. The company generates the majority of its income from the Other Store-Based
Retailing in Australia industry.
In 2020 the company generated total revenue of $1,552,721,000 including sales and other
revenue. In 2020 IKEA had 3957 employees in Australia including employees from all
subsidiaries under the company's control.
The Chief Executive of IKEA is Mr Jan Gardberg whose official title is Chief Executive Officer.
The Chairman of IKEA is either not applicable or not available.
End of source 1.
Reference: IBIS World. (2020, August 31). IBISWORLD - IKEA Pty Ltd. Retrieved August 12,
2021, from https://www.ibisworld.com/au/en/company-reports/10359/companydetails#company-snapshot
Source 2 – IKEA Website
Primary Target Market:
IKEA'S Business idea is to offer a wide range of well designed, functional home furnishing
products at a low price. The target market is very broad. They are aiming to appeal to
people of all ages, sexes, geographic locations, all who have one thing in common: Price
preference.
Product Strategy:
Low Price – their products are not the only low prices but are of great quality for the money.
This is what differs IKEA from other discount furniture stores. The products are brand new,
good quality economically produced. They are bought in bulk to keep the costs down, and to
ensure they're more affordable. The furniture is also flat packed to cut down on
transportation costs as well as assembly costs. IKEA products are also based on design. Their
products are visually appealing, modern, and generally easy to use and put together.
Positioning Strategy:
The IKEA concept is based on the market positioning statement. “We do our part” focuses
on their commitment to product design, consumer value and clever solutions. By using
inexpensive materials in a novel way and minimizing production, distribution and retail
costs, their customers benefit from low prices.
Customer Service Strategy:
Customer service strategy: “Everything under one roof” available for immediate acquisition
and take home. It offers service when needed but generally allows customers to make their
decisions. IKEA shows the products as they look, and also have a return policy if and when
customer should change their mind about an acquisition.
Pricing Strategy:
Costs are cut and way necessary to be able to sell the product for less and still turn a profit.
They use large volumes and flat packaging to cut costs; the transports are economics from
the furnisher via the stores, to the customers. Their prices are less expensive than most
competitors, and their stores are outside city centres to keep prices even lower.
Public relations:
The main reason for this function is to communicate IKEA's vision, business idea, brand
values.
Note: The information above was obtained from https://www.linkedin.com/pulse/ikeafurniture-industry-aditya-ishan