IKEA – Furnish your future

Few days ago, on the 1st of November, I visited within the Marketing Project excursion IKEA store, which is situated in Haparanda, Sweden. It has been my second IKEA visit in my life, so let me tell you my feelings and experiences about this store, visual marketing, communication and also about services providing to the customers.

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At the beginning I would like to introduce IKEA shortly. With 202 stores in 32 countries is ranked to the biggest and most famous retailer with focus on designing and selling furniture, appliances and home accessories nowadays. Every day IKEA stores visit about 1 million customers and it has about 84,000 co-workers to cover their demand.

The IKEA spirit is strong and living reality. Simplicity in our behavior gives us strength. Simplicity and humbleness characterize us in our relations with each others, our suppliers and our customers.

Ingvar Kamprad, founder of IKEA

After walking through main entrance you are absorbed by information point of possibilities in IKEA. There you can get the newest catalogue of products, some brochures, advertising and also the stuff needed to measuring and marking the products you want to buy. After following the arrows and walking next to boxes, where you can let you staff locked, you get to fully furnished bedrooms, kitchens, dining and living rooms.

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Visual marketing is one of the key factors of IKEA successfulness. You can buy there modern and useful products for very good prices, but the most important thing is the way how it is offered. You can get inspired about the materials, design, and placement of the furniture, can see and try it in real time and proper place. The visual marketing is made by professionals, every decoration and component from the picture on the wall to the style and intensity of lights are chosen very thoughtfully. I think it presents the vision and business idea of offering a wide range well-designed, functional home furnishing products at low prices in very good way. On several places you can find the information points with IKEA employees, who will help you when needed.

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In the middle of the store is situated IKEA Restaurant, the second key factor of IKEA successfulness. There is possibility to let your shopping basket in special parking and get some tasty meal or drink from wide menu, what is advertised on many places in the store. IKEA restaurant is in detail furnished by its own brand, so also here is possibility to try and see how useful and well-designed these products are.

IKEA is not completely perfect. It irritates me to hear it said that IKEA is the best company in the world. We are going the right way to becoming it but we are not there yet.

Ingvar Kamprad

IKEA is simply sad well-made showroom of visual marketing, following its vision to create a better everyday life for the many people in perfect way.

Arctic Warriors

Dear Readers,

as I suggested in previous blog post, this blog is focused on Ilka Kauppinen presentation, which we had the honour to attend on 12th of October. The content of presentation was his life,  Arctic Warriors Company and its marketing strategy.

Arctic Warriors Company was set up in 2014. One year later it won the competition of the best start-up company. The business is tradition of the family and it is based on planting arctic plants, which are very powerful. Next products from these plants are 100 % natural supplements, which are tasty and can improve user’s wellbeing. In the portfolio is about 15 product nowadays, which are against flu and stress, or give you power and vitamins.

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At the beginning of presentation Ilka introduced himself like a marketing specialist and IT graduate. After few words of the company history and network of local farmers and herbs pickers, he aimed his focus to marketing part of his company.

Before the business it is necessary to look around the market. The very base is market in your country, or part, where you want to enterprise. After that you should also have knowledge of foreign global markets, what is necessary for company future expand. I guess it is very needed part of investigation, because based on market gaps you can develop your product. After benchmarking you should know your potential customers and do segmentation of the market. Based to the pre-research, the most common customers of Arctic Warriors products should be teenagers and young people. But according to real purchasebility, average customer is woman between 35 and 55 years old buying products for her family.

Next part of presentation was about social media marketing and marketing mix “4P”, which consist of:

  • Product
  • Price
  • Promotion
  • Place

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The easiest way to sell this kind of products is making “product family“, or “product packages”. Ilka also said, the best strategy in the beginning of enterprise is having in your portfolio several products, because there is still alternative to reduce its amount when the demand is not enough high.  In this time is also very important to have more different channels of distribution, such as supermarkets, specialized pharmacy stores or online web shops. The best amount channels according to Ilka is 2. For the pricing of Arctic Warriors Company was used “Green Skimming Pricing“, when is on the beginning of market entrance price very high and decrease step by step.

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The most important think, when you do your business via internet, is promotion. Advertisement is the best way how you can get the information about your product or service to your current or potential customers. This rule proceeds more, when you have small and new business. You should very carefully use social medias, because it is one of best low cost way, how to draw attention to your company without selling part of your company rights to big chains and stakeholders.

Stay tuned for my next posts!