Chapter 11: Developing and Managing Products

IKEA habe been creating so many products but they never stop creating new products consistently. Because of their wide procuct line mix, it is almost impossible for them to add new product lines. However, they are focusing on deepening their product lines. Thus, their new products are usually additions to existing product lines.

Additions to existing product lines

IKEA recently added steed bed named DUKEN to their bed product lines. Most of their beds are made of woods so IKEA deepened their bed product lines by adding affordable steel bed.

In addition, they added new floor lamp called IKEA PS 2012 and new table lamp called LYRIK to their floor lamp and table lamp product lines. IKEA PS 2012 is girlish and beautiful. They added these products because they probably found out that they did not have products specifically for female.

Moreover, IKEA keeps producing new strange lamps. They are trying to offer something new to living room.  However, those products are so difficult to coordinate, and deepening product lines is not always good choice.  I'm not sure if people actually want these new products.



 

Chapter 16: Integrated Marketing Communications

IKEA is using combination of advertising, public relationship, promotion, and personal selling promotional mix in order to reach target market.

Advertising

This tv commercial tells us that we can design our own kitchen and how tough IKEA's kitchen is by shooting "a kitchen party." It says the kitchen are guranteed lasting for 25 years. In addition, the tv advertising is trying to induce viewers to go to web page at the endo of the advertising. The web page(http://www.ikea.com/gb/en/catalog/categories/departments/kitchen/) explains details. 

Public Relations
IKEA is trying to earn public acceptance and understanding by showing on the web page that they are doing something good for the environment. They have put a lot of solar panels on their retail stores and it cuts use of electricity. In 2010, IKEA started putting solar panels on 7 stores in California, a store in Arizona and Southeast, and 2 stores in East coast. These 11 systems contains about 30,000 solar panels and generate 6,800kw electricity. 

Also, they made yearly summary video which explains what IKEA is doing.

Sales Promotion

During upcoming Thanksgiving holiday, they are doing discounts in order to increase motivation of customers to come to IKEA retail stores.

Personal Selling
IKEA's employees working in their retail stores are so helpful. If we tell them what we are looking for, they will make and print item lists of the products. After payment, we can easily arrange for home delivery at delivery area.


By using those product mix, IKEA is trying to reach target market efficiently.

Chapter 10: Product Concept

IKEA's ProductsIKEA's products are consumer products because their products are designated to satisfy consumer's wants. IKEA's main products are obviously furniture, utensil, and everything we need in our house. In addition, their store is also their product since product does not need to be tangible. People can have a lot of fun just looking around IKEA store with their friends and family. Not only after buying their products but before buying the products, IKEA is offering products for customers. IKEA's store is like an furniture amusement park. There are many different kinds of model rooms that people can actually see and feel. Also, customers can enjoy Swedish meal in IKEA restaurant in their stores so restaurant service is also IKEA's important product.

IKEA's product mix width is very wide. Their products include chair, table, bed, lamps, tree, kitchen, Swedish restaurant, and so on.
Moreover, IKEA's product line depth is very deep. For example, their arm chairs product line includes over 50 different kinds of arm chairs.

In addition, IKEA has high brand equity because most of people know what IKEA is doing and they have high brand loyalty. Since IKEA's products are affordable and cheap for the quality of products, people tend to buy many IKEA's products at onece.

Also, IKEA's products are all private brand. They design, produce, and sell all by themselvs. They do not let other company to design their products. Thus, IKEA's products have high coherency and credibility. All products are tough and easy to assemble. Those are why people keep buying IKEA's products and the stores are always crowded.