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Title: Ikea in India
Description: Ikea is one of the most successful brands from Sweden, which is the world-leading retailer of modern furnishers, appliances and home accessories. It is a hugely popular ready-to-assemble home furnisher brand that is being sold in 43 countries operating 349 stores with sales return over $3.3 billion (Ikea FY14).

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Contents

Executive Summary
Choice of country: India
Country Analysis
Demographic
Hofstede’s Cultural Dimensions brief analysis
Cultural Events and Celebrity Influence
Competitors Analysis
Target market
Market Trends
Previous marketing communication review
Marketing Communication Plan
Marketing Communication Objectives
Marketing Communication Strategy
Advertisements and Internet
Media objectives and strategy
Creative Objectives and strategy
Evaluation strategy
References

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Executive Summary
Ikea is one of the most successful brands from Sweden, which is the world-leading
retailer of modern furnishers, appliances and home accessories
...
3 billion (Ikea FY14)
...
India is among the largest markets of the world in terms of
its sheer size along with China which together account for 37 percent of the overall
world population (worldometers)
...
Followed by China, it
has a large consumer base backed by the huge populations having a considerable
amount of spending power
...

Currently, India has a population of over 1
...
According to the 2000 census, India contains
demographics of Indo-Aryan 72%, Dravidian 25%, Mongoloid and other 3% with
most citizens, despite cultural differences, speaking the official language of Hindi
plus English as subsidiary extensively in business
...
5% Indian practice Hindu also widely influences the culture of
their society
...
5% Indians are 0-14 in age, 18
...
4% in
25-64 and less than 5
...
The media age of India’s population as a
whole is 28, which is significantly lower than China and Japan (CNBC)
...
The male
adult literacy rate stands at 75 percent, while female literacy is significantly lower at
51 percent
...
Traditions, rituals, art, music and dance,
drama, literature, movies, recreation, sports and cuisine all have their distinct flavors
depending on the region of the country
...
This score indicates Ikea should utilize
communication strategies that reflect consumers of equal status i
...
advertisements
should relate to relevant lifestyles of different professional or social ranks
...
India is actually very masculine in terms of visual display of success and
power
...
Also this ranking indicates that unlike feminist,
men have less interest to shop for commodities and thus advertising should be focus
on women unless the products are men exclusive
...
In Collectivist societies people belong to ‘in groups’
that take care of them in exchange for loyalty
...


Cultural Events and Celebrity Influence
Indians are passionate about crickets and top national cricketers represent whole
public
...
Celebrity Influence: When a
consumer likes the celebrity (Bollywood) in the advertisement, he or she is more
likely to accept what the celebrity says about the advertised product and therefore will
develop more positive feelings toward the advertisement and the brand itself
...

Hulsta is world famous furniture brand, which was established in 1940
...
So far it has two furniture
showrooms in Mumbai and Delhi (India)
...


Target market
Upon initial penetration of India, Ikea home furniture will be targeted in primarily
country major cities such as NEW DELHI (capital), Mumbai, Kolkata Bangalore that
contain most of the Y generation population accompanied by income prosperity
...
From a cultural standpoint, although
India is culturally diverse with minorities, the brand’s campaign will target
predominantly to majorities of Indo-Aryan, Dravidian and Mongoloid consumers who
practice Hinduism and speak Hindi and have enough purchasing power to shop for
commodities, typically these consumers will be 15 and above
...
e
...
(Hofstede’s masculinity cultural dimension)
Market Trends
Furniture consumption in India recorded 10% average yearly growth over the last
decade, reaching about US$ 15 billion in 2013 at retail prices
...
Branded furniture today has a
market share of approximately 30% in India and is mainly concentrated in cities
...
Other than that, there is several market trends notably
become apparent, such as
-Kids Furniture gaining popularity
-Rising Popularity of Traditional Furniture
-Modular Kitchens
-Use of Recycled Wood
-Use of Innovative Materials
According to a new global survey, consumers of India and Brazil have the most
environmentally friendly lifestyles i
...
Indian consumers are likely to buy
environmentally responsible products
...

The result of this survey suggests Ikea can penetrate into the market by
communicating messages to “India environmentally friendly lifestyles”
...

Their marketing is mainly through advertising, public relations and promotional
events
...
Their advertising
campaign typically open awareness to target customers but their brand name
generates sales in everything from the furniture and appliances even the restaurant
...
IKEA have run many different ads in China, in TV,
newspapers and in print
...
Internet is another
common source of information for the target group, the younger middle class
...




6

Marketing Communication Plan
After evaluating the country and cultural conditions of India, it becomes evident that
several integrated marketing communications objectives need established before the
brand can slowly assimilate into the country
...
of penetration

Marketing Communication Strategy
Although furniture retail giant like Hulsta been introducing modern home wares,
many consumers decline such products for a variety of reasons
...
Convincing consumers
the suitable benefits for Indians including Ikea branded products are durable and less
expensive value for money products, which are affordable for the mass
...


Advertisements and Internet
After evaluating the country of India, most local consumers often recall product
placements from the television, billboard, Radio and online, thus those media are
selected
...
In
addition, the rapidly growing medium of Internet will be focused as one of the tools
that allow customers to search for information about Ikea brand products and initiate
for purchase
...


Media objectives and strategy
The main integrated media objectives are as follows:
1
...
Increase billboard advertising in 4 major cities of India
3
...

The firm will focus some efforts on increasing message strategies through the
medium of newspaper, magazines, television, billboards, website banners and online
video
...
In terms of newspaper and magazines, the goal over the first 5 years
penetration period is to increase the amount of copy since it has strong long shelf life
and that will develop consumer’s everyday contact with Ikea brand ads
...
In terms of Internet, the India
government data show the rapid incline regarding to Internet users, and this suggest
the firm to increase ads on popular websites among young and adult customers
displaying decoration of typical Indian homes with Ikea stylish products hopefully
that will incorporate the products into customers living styles and subsequently
stimulate desire to adapt
...




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Creative Objectives and strategy
The main campaign’s creative objectives are as follows:
1
...
Communicate eco-friendly benefits
3
...
Attach “Family” sensation
5
...

One of the most obvious messages to be communicated about the brand is that Ikea
products often costs much less than other handicraft brands or other retailers but
without a doubt having a good quality to satisfy customers’ expectation
...
To illustrate this in
creative line, text should reveal “value for money”
...
To illustrate this, “Saving Environment” Finally,
to culminate the campaign, Harley-Davidson will establish a catchy slogan that
accommodates Hindi dialects, in order to fully integrate into the India consumer’s
daily life and remind them of what the brand really stands for
...

Second, Ikea should do a survey on random Indians customers to find out how the
brand is perceived in the local culture
...
By conducting this
evaluation, Ikea can effectively determine whether or not the campaign was
successful or not
...
worldometers
...
– III, Issue –3(3),July 2012 [71]
(http://www
...
edu/3776238/Marketing_Strategies_of_Global_Brands_in_Indi
an_Markets )
IKEA's first India store not likely before the end of 2016
(http://www
...
com/article/companies/ikea-s-first-india-store-notlikely-before-the-end-of-2016-113101400773_1
...
livemint
...
html
FDI in retail: India awaits world's biggest furniture manufacturer 'Ikea'
http://articles
...
indiatimes
...
worldfurnitureonline
...
php?template=reports&id=5839&m
asterPage=report
...
com/ikea-designs-4-indian-cities-including-bangalore)
India’s Secret Weapon: Its Young Population (http://www
...
com/id/49472962)
India: the Land of Mystery and Diversity
(http://culturalawareness
...
com/india
...
com/2013/05/27/top-10-furniture-brands-in-india/)
Agrawal, Meenu
...
thefreelibrary
...
-a0225316710)



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Title: Ikea in India
Description: Ikea is one of the most successful brands from Sweden, which is the world-leading retailer of modern furnishers, appliances and home accessories. It is a hugely popular ready-to-assemble home furnisher brand that is being sold in 43 countries operating 349 stores with sales return over $3.3 billion (Ikea FY14).