Service Operations Management-IKEA,SERVICE CONCEPT,SERVICE CHARACTERISTICS AND SERVICE DELIVERY CHARACTERISTICS,SERVICE PACKAGE,SERVICE BLUEPRINT,SERVICE TRANSACTION ANALYSIS

1. Service Operations Management Assignment
Name :- Snehal Nemane
Roll No :- H-91 (IFEEL)
Organization Name :- IKEA
Service Offered :- ready-to-assemble furniture, Kitchen
appliances and home accessories,food services.
Organization Information :-
IKEA is a Swedish-founded Dutch-based multinational group, that
designs and sells ready-to-assemble furniture, kitchen appliances and
home accessories.Ithas beenthe world's largest furniture retailer since
at least 2008. It was founded in Swedenin 1943 by then-17-year-
old Ingvar Kamprad, who was listed by Forbes in 2015 as one of the ten
richest people in the world, worth more than 40 billion dollar. The
company's name is an acronym that consists of the initials
of Ingvar Kamprad (name of founder), Elmtaryd (the farm where he grew
up), and Agunnaryd (his hometown in Småland, southern Sweden).
The company is known for its modernist designs for various types of
appliances and furniture, and its interior designwork is oftenassociated
with an eco-friendlysimplicity.
SERVICE -CONCEPT
1.The Organisation Idea:-
Providing quality home furnishing products at affordable prices.The
thinking behind all the developmentof IKEA’s products is that low prices
make well-designed,functional home furnishings available to everyone.
IKEA’s goals are to constantly do everything “a little better, a little
simpler, more efficientlyand always cost-effectively.”
2.The Service Experience:-

2.  Nice and helpful service staffs are ready and available to assist
each customerwhen they need help.
 Customers can shop at the clean and tidy environment with
friendly atmosphere and courtesy.
 All their goods sold in their catalogues are in stockand cheaper
than other furniture supermarket and their customercan return.
 All customers shopping in the IKEA have free car parking and
baggage locker.
 Smaland is a fun and safe environment for children to play while
parents and guardians enjoy their shopping.
 Range of attractions of Furniture and other products.
3.The Service Outcome:-
 Customerfeelsatisfied and convenient with the goods and
services they received.
 Feel good value for money
 Customers want to go IKEA again when they want to buy furniture
and save money.
 Recommend IKEA to their friends
4.The Service Operation :-
 Free returns of many goods within a 45 days period while IKEA
FAMILY members get an extended 90-day return period.
 Differentways to pay such as cash, IKEA gift and e-gift cards,
VISA credit and debit, MasterCard creditand debit, American
Express,debit cards, Apple Pay
 Advance logistics and replenishmentsystem
 Order Tracking System for Customers
 Delivery options : In-store Flat Delivery, In-store Picking with
Delivery and Online Delivery
5.The Value of the Service:-

3.  Offerquality goods forcheaper prices
 IKEA family members can have extend the warranty
 Offerthe discounts and gift cards to the customers
 Few additional costfor some customers who require their goods to
be delivered
SERVICE CHARACTERISTICS AND
SERVICE DELIVERY CHARACTERISTICS
1.Service Characteristics:-
 Giving Membership cards to the Loyal Customers (IKEA FAMILY
members)
 Giving more extension period i.e 90 days instead of 45 days to
IKEA FAMILYmembers.
 Apart from offering a wide range of kitchens, IKEA also offera
wide range of services,including measuring, planning, delivery,
and installation.
 Providing Home Furnishing Consultant
 On demand Helper Service (WunWun and Task Rabbit): were
customers posta desired task and pre-screened helpers will either
bid on your shopping requestor one is automatically assigned to
complete the task.
 IKEA Online Store where customercan visit IKEA website to order
the Furniture.
2.Service Delivery Characteristics:-
 Prices range from $29 to $59 for delivering furniture for Large
items Delivery using Full truck space. The prices vary based on
demand and distance from the closestIKEA retail store to your
shipping address and its based on Flat rate pricing – Unlimited
number of pieces
 For Small Item Delivery i.e Parcel Delivery the rate is flat $9.

4.  AssemblyServices is available for customers who wish to availed
it at $89 to $779 based on the value of Merchandise.
 IKEA offers Swedishfood and Bistro to the customers at IKEA
stores at lowest possible price.
SERVICE PACKAGE
1. Supporting facilities :-
 Accessibleparking spaces – these are located conveniently close
to store entrances and may be used by accessibleparking badge
holders.
 Accessibletoilets – located in all public toilet blockareas in each
store.
 Hearing loops – installed at numerous locations throughout each
store as indicated by signage to assist hearing aid users by
switching to T setting or hearing loop programme /on their aids.
 Loan wheelchairs – a limited number of manual wheelchairs are
available inside each store entrance area, a simple sign out
process is in place. Motorised scooters are welcome but are not
available to loan from stores.
 Store have short-cuts to meet fire regulations, shoppers find the
exits hard to spotas they are navigating their way through displays
of flat-pack furniture.
 IKEA Store have signs that direct customers in a disorienting
maze, showing them so many products and making them spend so
much time that they end up buying more than they planned on.
 Shoppers can grab a regular cart or big yellow bags and a rolling
bag holder.
 Showroom is on the top floor, where large merchandise is
displayed.
 The giant chair area has ample places to sit down — a feature that
one appreciates when walking through the footstore.

5.  There are the tiny modelhomes that are scattered through the
store
2.Facilitating goods :-
 Sofas and armchairs
 TV media furniture
 Coffeeand side table
 Living room storage
 Beds
 Bedsheets
 Kitchen appliances
 Desks and tables
 Office chairs
 Bins and bags
 Lighting, etc
3.Information :-
 Up-to-date Customer address for regular customers
 Display of properpricing with discounts
 Signs for guidance through various Departments of same category
of products
4.Explicit services:-
 Value for money by low pricing forcustomers
 Availability of products which customerwishes to buy.
 Helpfulness of staff
 Less waiting time
 Variety of payment options

6. 5.Implicit services :-
 Helpfulness of staff
 Good ambience for shopping
 Well lighted parking lot
 Free parking lot
SERVICE BLUEPRINT

7. SERVICE TRANSACTION ANALYSIS