Ikea

ABSTRACT

This Bachelor degree thesis deals with the strategies that IKEA has adopted in France since its

establishment up to now. It is essentially based on interview with the person responsible for

the public relations of IKEA France. But, other sources were used concerning our empirical

findings: IKEA's brochures, surveys from researchersÐ'... The purpose of the thesis is to

explain and illustrate how a company succeeded to establish abroad, by applying a domestic

concept. This issue is of importance because it provides information for the reader who would

like to know how a company can be export all over the world by adapting its policy to the

local specificities. It identifies and gives explanations about the marketing strategies

implemented to export the IKEA concept to the French market.

The research was conducted using the case study method. It is based on primary and

secondary data. Secondary data collected from IKEAÐ'Ò's brochures and survey research results

and primary data collected through interviews with the person responsible for the public

relations of IKEA France.

The applied theoretical model is based upon the concepts of standardization and adaptation

and also the SWOT analysis that are discussed in the theoretical framework part of our thesis.

The results of the research show that, IKEA prefers standardization to adaptation: it sells, with

some exceptions, the same products in its stores. But, about the place of establishment of the

stores in France, Ikea was forced to adapt to the sites and especially to the ways of life of the

inhabitants. The distribution varies and cultural adaptation too.

As IKEA claims to standardize its products to people, the communication is important to

make change people attitudes and style of interior for example. It is necessary to show people,

who think that Ikea is not for them, that Ikea is not what they think. So, the last section of our

thesis is devoted to the communication strategy. The advertising execution is clearly

integrated to the IKEA strategy.

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TABLE OF CONTENTS

Page

ABSTRACT _______________________________________________________ 3

TABLE OF CONTENTS______________________________________________ 4

1. INTRODUCTION _________________________________________________ 6

1.1. Background__________________________________________________

________________________ 6

1.2. Problem discussion__________________________________________________

__________________ 7

1.3. Purpose ____________________________________________________________

_________________ 7

1.4. Limitations ____________________________________________________________

______________ 8

2. METHODOLOGY_________________________________________________

8

2.1. Research Methods ____________________________________________________________

________ 8

2.1.1. Induction and deduction ____________________________________________________________

_ 8

2.1.2. Explorative, descriptive and causal research _____________________________________________ 8

2.2. Quantitative and qualitative research ____________________________________________________ 9

2.2.1. Quantitative research methods ________________________________________________________ 9

2.2.2. Qualitative research methods ________________________________________________________ 10

2.3. Primary and secondary data ___________________________________________________________ 10

2.3.1. Secondary data ____________________________________________________________

_______ 10

2.3.2. Primary data ____________________________________________________________

_________ 11

2.3.2.1. Questionnaires ____________________________________________________________

___ 11

2.3.2.2. Interviews ____________________________________________________________

_______ 11

3. THEORETICAL FRAMEWORK_____________________________________ 12

3.1. The SWOT analysis ____________________________________________________________

______ 12

3.1.1. The strategic and creative use of SWOT analysis ________________________________________ 12

3.1.2. Internal and external factors _________________________________________________________ 14

3.1.3. Examples of SWOT ____________________________________________________________

___ 15

3.2. The Marketing Mix (The 4 P's of Marketing) _____________________________________________ 16

3.2.1. Product Decisions___________________________________________________

______________ 17

3.2.2. Price Decisions___________________________________________________