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1.0 IKEA’s Retail Operations

Ikea is a - storey durable good store located at Alexandra Road. IKEA belongs to a specialty store finding its niche as selling beautiful and durable furniture at prices so low that the majority of people can afford them. They pride themselves as a store which provides well-designed and functional home furnishing products.

.0 Image and promotion

IKEA cares for their customers and represents a family image where the entire family can shop together. IKEA reduces their prices every year so that they will always be on the side of the customer.

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They care for the comfort of children by having colourful ballroom and video room for children to play and watch. IKEA also have special children’s menu, high chairs, baby care rooms and microwave ovens for warming milk. Cereals and baby food are also sold in the restaurant.

On the other hand, IKEA also watched for the handicapped by providing wheel chairs and special carts that can be attached to the wheel chairs for their convenience.

Ikea has blurred the line between those who shop on lifestyle and those who shop on budget.

.1 Loyalty Programs

IKEA friends card is issued when customers purchased items totaling more than $00 in a single receipt in a single day. As a member, the customer can buy selected items at benefit prices as well as accumulating Bonus points through their purchases which can be exchanged with the bonus gifts shown in the website and also displayed at the friends counter. Other than that, members will also enjoy cups of free coffee, tea or dispensed soft drinks and members discounted meal for persons everyday. Customers may enjoy exclusive opportunities to attend to talks, seminars, workshops and activities organised for members and not excluding special preview to Annual Sales. Free newletters and promotional materials will be sent to friends members periodically. All these will allow IKEA build interactive relationship with their customers.

.0 Customers

IKEA appeals to the opposite ends of these consumer pools. It has adopted a new trinity of design form, function and an affordable price in an effort to redefine the relationship between low prices, quality, and aesthetic value. Their goal is to eliminate a tradeoff between the three.

Ikea’s attractive modern designs appeal to people who were already conscious and concerned with the aesthetic quality of commodities they bought, yet, by offering them at such low prices. They’ve removed the added sign value of wealth that used to be synonymous with Design. The new sign value thrift

4.0 Pricing

Customers are charged the price where majority of people can afford to purchase IKEA products. Ikea has many techniques that cut the cost of the product, the most important being that the Ikea company has almost complete control over the creation of its products; from their design, through the choice of materials, to its construction, and finally to its marketing and placement., saving the costs of a middleman. Apart from that, Ikea saves money are by selling all of their furniture as assemble yourself, spacing their stores close to their distribution centers, and, they prides themselves by being flexible and creative and thrifty in the face of problems.

5.0 Merchandising

IKEA products can be classified under furniture department and market Hall. Under Furniture department, it is classify under different rooms, ranges from the living room furniture to the entrance and hallways. Under the living room furniture, there are glass door cabinets, armchairs to foot stools, etc. As for the entrance and hallways, there are shoe racks and cabinets as well as hats and coat racks for customer to select from.

IKEA furniture is flat packed as it would be cheaper for IKEA to store and transport. They put their furniture through vigorous testing to ensure it can stand up to anything. IKEA customers have to assemble the furniture by themselves to reduce the cost of paying someone in a factory to assemble the products. IKEA designers create the price tag first as their main concern is to make good quality products at affordable prices.

IKEA produces and distribute in bulb to keep prices low. It carries a narrow but deep assortment and tailors the strategy to selective market segments. To ensure that their customers shop with assurance at IKEA, customers can bring their purchase back unassembled with the original packaging and their receipt within 0 days for an exchange or refund. These can ensure customer satisfaction at IKEA. Products are classified in such a way that customers can find a variety of mirrors at one corner and would be able to compare the prices.

6.0 Operations

It operates from 10am to 10pm everyday. Shopping at IKEA could not do without a shopping guide, a pencil and measuring tape. These items are available at the entrance and the sale counters in the store. This is because there are few shop assistants around IKEA as one of IKEA strategy is to allow their shoppers shop on their own. IKEA includes product name, facts, benefits, price and care instructions, how you can buy the item as well as the location of the item, on the price tag. These will enable the customer to make a buying decision without having to consult their sales personnel, reducing the cost of sales assistants in IKEA, where IKEA pass on the savings to the consumers. However, IKEA provide services to cater to their customers needs such as home and office furnishing services, kitchen planning service and home delivering and assembling services. There is a restaunt and a supermarket located in IKEA to cater to Singaporeans eating and shopping likings.

5.1 IKEA Warehouse

The warehouse is located above the store and occupies three floors. This was expanded in November 001 from 1,770 m. This can save on the transportation costs from the warehouse to the retail outlet.

5. Home and office furnishing services

IKEA provides consultants help to furnish their customers homes and offices. For room furnishing, IKEA provides complimentary room enquiry where their customers can have an insightful discussion with their home furnishing consultants. IKEA consultants provide a wide range of services such as space-planning, furniture recommendation and advice on colour coordination of walls, curtains, carpets and lighting at a fee.

For Commercial Project, IKEA want to provide their customers with a stylish and ergonomic work environment. IKEA trained consultants will be able to assist their customers with space-planning ideas and aesthetic solutions. For corporations and organisations which would like to make bulk purchases, they can open a Corporate Account with them where they will gain access to a wide range of services all in the convenience of their own office. For example, they could send in orders by fax or call to arrange for delivery services without stepping into the store.

5. Kitchen Planning Service

Ikea promises that their customers can get a new kitchen in 10 days with a 10-year guarantee! They provide free kitchen planning services for people who purchase a minimum of $1,500 worth of IKEA kitchen products! Their trained kitchen planners will provide you with a computer-aided -D kitchen plan that includes a floor plan, elevation drawings and electrical/lighting layouts. The planners will also recommend complementary accessories to go with the kitchen design and will handle the site measurement, delivery and installation. The planners will be on site to ensure a proper handover of the completed kitchen to you. Best of all, theres a 10-year guarantee on IKEA kitchens!

5.4 Home delivery and assembly services

IKEA products are self-assembled and come in flat packs. This means that their customers do not have to pay for the assembling fees. Apart from the loaning of tools for dismantling of purchased AS-IS products, Ikea also offer complimentary short-term loans of power drills for wall drillings.

6.0 Food in IKEA

6.1 IKEA restaunt

To cater to Singaporeans’ likes on shopping and eating, IKEA restaurant is right in the heart of our store. IKEA restaurant provides a resting place for you and your family to indulge your taste buds with our palatable array of Swedish and local dishes, at very appetising prices.

6. Swedish Food market

As IKEA is a Swedish company, they want to use Swedish heritage to compliment the Swedish furniture using a Swedish Food Market, where customers can find a popular selection of Swedish snacks and food products.

7.0 Store location

For an Ikea store to be profitable, it requires a high-density consumer base the ideal Ikea location is within a metropolitan area, but not within the city itself. When Ikea is accessible to the many groups of the urban and suburban population and the different shades of Lifestyle (or no Lifestyle) they embody, a shopping environment of unprecedented vitality is. The poorer, less urbane customers emulate the stylistic consumption patterns of the hipper and wealthier, who in term revel in the novelty (and indulgence) of good design at discount prices.

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