2. Basic Company Information
Ikea was started in 1943
in Sweden by Ingvar
Kamprad.
It is the largest furniture
retailer with over 390
locations all over the
world.
Has locations in 49
different countries.
3. Unique Selling Proposition
Lowest prices for good
quality products.
Easy self-assembled, flat-
pack designed furniture.
Family-friendly products
with a massive range.
4. New Zealand
They are similar to Australia since the two
countries are very close in relations.
New Zealanders are hands-on people, so
building furniture would not be a problem.
I think Ikea would do well in New Zealand and
have friends who have shown interest to the
brand
5. Target Market
Following Ikea’s strategy of
targeting the mass-market.
Have specific target groups,
such as young/growing
families or students.
Start with the Auckland
area, since it has the
highest population.
6. Competitive Brands
The top furniture retailers
in New Zealand are:
Traditional
• Freedom Furniture
• Big Save Furniture
• Target Furniture
Online
• iFurniture
• PK Furniture
7. Competitors
Strengths:
• Freedom Furniture is the
largest furniture retailer
• Already have an established
consumer base
Weaknesses:
• Expensive
• Online shopping is not a
preferred method of
shopping
8. Considerations
• New Zealanders are very easy going and family
oriented.
• Understanding the local culture/environment is
key.
• New Zealanders are very supportive of local
businesses and relationships.
• Distance from the rest of the world is something
to think of in terms of shipping and services.
9. SWOT
STRENGTHS
• Great at understanding their
consumers and adapting for them
• Good quality goods at a low price
• Foreign brand image
• NZ furniture market is growing (4%
increase from 2012-2013)
WEAKNESSES
• Entering a new market
• Building new stores and
warehouses
• Generic, simple products
• May seen as lower value than
expensive brands
OPPORTUNITIES
• Targeting consumers and families
who cannot afford the more
expensive brands on the market
• Working with local vendors and
expanding relations
(supply/manufacturing)
THREATS
• Online furniture companies
• Present furniture brand loyalty
• Are we able to build new facilities?
• Can we keep prices low?
• Importers of Ikea goods
11. Mode of Entry
Ikea would enter the new market directly
• Avoids future legal problems such as dealing
with rights and franchises.
• Allows them to control and manage the
company exactly how they want to.
• Greater sales and returns
• Better relationship with local consumers and
understanding their wants and needs.
12. Promotional Activities
Ikea has a very strong understanding in their
promotional activities and are able to target newer
audiences by staying in trend and innovative.
Relatable company that interacts with their consumers
• Advertisements that poke fun at other brands
• Interactive pop-up shops
• Augmented reality catalogs
• Social media
16. Future Expectations
• To be able to work with local businesses to
keep prices low.
• Expand to surrounding areas or cities.
• Have an Ikea facility for New Zealand
consumers.
• Still follow Ikea’s sustainability standard.
• Create more innovative products that are
targeted towards the local population.
